Building Details

Year built 1815

Roof type Metal

Listing Agency: Cottonwood Commercial LLC Show Phone

Listed By: Ashley Swartz · License ##0225103133 Show Phone

Added: Jan 14, 2025 Changed: Aug 14 Last Checked: Aug 16 at 2:06AM

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MLS# 660026

Copyright © 2026 Harrisonburg-Rockingham Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

The Thomas House Restaurant & Inn is an open and operating hospitality property offered turn-key, with furniture, fixtures, and equipment included. The original dwelling was built in 1815 with an 1854 addition, and a restaurant addition was added in 1960. The property includes an operating restaurant with ample seating and private rooms in the home for serving groups and parties.

The inn portion features five bedrooms and four baths, plus a 1 bed/1 bath apartment and an unfinished basement with a private entrance and bath rough-in, previously used as a second apartment. The listing also notes the property has been operating continuously since the 1960s, supporting a live-work concept.

The property is located at 222 Main St in Dayton, Virginia. Zoning is B-2 Business (General). Lot size is approximately 0.46 acres and the property size is listed as 8,244 square feet.

Key Highlights

• Thomas House Restaurant & Inn in historic downtown Dayton, VA, open and operating
• Original dwelling built in 1815 with an 1854 addition; restaurant addition added in 1960
• Home has 5 bedrooms and 4 baths, plus a 1 bed/1 bath apartment; unfinished basement with private entrance

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$49,928

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

8.05%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$998,560 $998.6K

Cap Rate 7%

$713,257 $713.3K

Cap Rate 9%

$554,756 $554.8K

Market Conditions

NOI Build-Up for 8,244 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$123.7K $15.00/SF

− Vacancy

−$18.5K −$2.25/SF

EGI

$105.1K $12.75/SF

− OpEx

−$55.2K −$6.69/SF

NOI

$49.9K $6.06/SF

Area

Rockingham County, VA

Vacancy

15.00%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

52.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$998,560

Cap Rate 7%

$713,257

Cap Rate 9%

$554,756

Alternative Uses

Best Use

Office B

$1.81M

$1.58M – $2.11M (±1% cap)

NOI $126,430 @ 7.0% cap · market cap 20.40%

Second Best

Specialty Retail

$1.37M

$1.20M – $1.60M (±1% cap)

NOI $95,720 @ 7.0% cap · market cap 15.44%

Theoretical Best

Office A

$2.48M

$2.17M – $2.90M (±1% cap)

NOI $173,915 @ 7.0% cap · market cap 28.06%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Bed & breakfasts

Suggested Use

Top Pick Auto Repair Shop Law Firm Auto Parts Store Dental Office Grocery & Convenience Store Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

169

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 22821, VA

5,848

Population

2,493

Households

2.3

Avg Household Size

39

Median Age

23%

College-Educated

78%

High-School Grad

72.5 sq mi

ZIP Area

81

Density / Sq Mi

$81,667

Median Household Income

$38,424

Median Earnings

$979

Median Rent

$252,000

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bed & breakfast - Turn-key historic restaurant and inn with ample seating, private group rooms, and onsite living space.

Where is this bed & breakfast located?

The property is located at 222 MAIN ST Dayton, VA.

What is the asking price?

The asking price for this property is $619,900.

What are key features of this property?

This property features: Thomas House Restaurant & Inn in historic downtown Dayton, VA, open and operating; Original dwelling built in 1815 with an 1854 addition; restaurant addition added in 1960; Home has 5 bedrooms and 4 baths, plus a 1 bed/1 bath apartment; unfinished basement with private entrance